WASHINGTON (October 1) - The National Association of Mutual insurance Companies welcomed the signing into law of a one-year extension of the National Flood Insurance Program by President Obama late yesterday.
“Today’s signing will come as a relief for millions of Americans who could be affected by floods or just wish to buy or sell a home,” said Jimi Grande, senior vice president of federal and political affairs for NAMIC. “However, the extension only maintains the program ‘as is.’ The NFIP is in serious financial trouble, and a simple extension such as this one will not help make the program self-sufficient or sustainable.”
NAMIC has called for a long-term extension of the NFIP coupled with specific reforms to improve its financial outlook, including a phasing out of premium subsidies for non-residential and secondary residences. NAMIC has also called for the modernization of flood plain and elevation mapping, incentives for mitigation programs and stronger penalties for financial institutions that fail to ensure that borrowers obtain coverage for properties.
“Congress has given itself a year to work on reforming the NFIP, and we call on them to take advantage of that time,” Grande said. “Many of the reforms NAMIC has called for, from phasing out subsidies for vacation homes and investment properties to the modernization of flood maps, have broad bipartisan support.”
The House approved the extension by a voice vote on Sept. 23, and it was passed by the Senate with unanimous consent on Sept. 21.
For further information, contact
Director of Media Relations
(202) 580-6742 Tel
Posted: Friday, October 01, 2010 9:16:11 AM. Modified: Tuesday, October 05, 2010 9:45:20 AM.
317.875.5250 - Indianapolis | 202.628.1558 - Washington, D.C.